Changes to business rates multipliers from 2026

Details of the changes to business rate multipliers in April 2026, why the changes matter, the legislative safeguards, and how to prepare.

From April 2026, the UK Government will introduce five new business rates multipliers.

These changes are part of wider reforms to create a fairer, more modern system that supports investment and protects the high street.

What’s changing

The current system uses two multipliers based on property rateable value:

1. Small business multiplier: for properties with a rateable value (RV) below £51,000
2. Standard multiplier: for properties with an RV of £51,000 and above

From April 2026, the system will expand to five multipliers. These will reflect both business type and property value.

New multipliers

The non-domestic rating (business rates) multipliers for 2026 to 2027 will be as follows:

• small business retail, hospitality and leisure (RHL) multiplier: 38.2p, rateable value under £51,000
• small business multiplier: 43.2p, rateable value under £51,000
• standard RHL multiplier: 43p, rateable value £51,000 to £499,999
• standard multiplier: 48p, rateable value £51,000 to £499,999
• high value multiplier: 50.8p, rateable value £500,000 or over

Why these changes matter

The new system is designed to support local businesses and ensure fairer contributions from larger operations:

• support for the high street, the new RHL multipliers will replace the annual RHL relief, giving eligible businesses long-term certainty.
• fairer contributions, a higher multiplier for High Value properties ensures major distribution centres and online retailers contribute proportionately.

Qualification criteria

Visit Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure – GOV.UK for the government’s guidance for qualifying retail hospitality and leisure criteria.  

How we’re preparing and how you can help

We are reviewing our property database to ensure that every business receives the correct multiplier from April 2026.

When you receive your 2026/27 business rates bill, please check that the multiplier applied matches your business type and rateable value. If you believe the wrong multiplier has been used, please contact the business rates team so we can review your account.

We will check the details of your property and business use, confirm which multiplier should apply, and update your bill if needed.